Construction Materials Market

According to Stratistics MRC, the Global Construction Materials Market is accounted for $1.3 trillion in 2022 and is expected to reach $2.7 trillion by 2028 growing at a CAGR of 12.97% during the forecast period. Construction material refers to any material used to build infrastructure. Numerous naturally occurring materials, such as pebbles, clay, wood, sand, twigs, and leaves, have been used to construct buildings. The construction industry uses a variety of materials, including bricks, concrete, cement, corrosion inhibitors, wood, ceramics, polymers, steel, recycled materials, glass fibers, rammed earth, bamboo, bituminous materials, and advanced building materials. They provide building and ecosystem building blocks, including houses.

According to the World Bank Group, in 2020, the total world urban population stood at 56.16% of the total world population.



Market Dynamics:

Driver:

Rising number of smart cities due to urbanization

One of the main factors driving the growth of the construction materials market is the increase in smart cities. Urbanization is growing along with population growth. Due to the growing urban population, urban services like public transportation and road networks are experiencing a number of difficulties. Countries all over the world are creating smart cities because they believe that by effectively addressing problems with public transportation and road networks, they will be able to reduce the congestion brought on by a growing population. The demand for construction materials will rise along with the development of smart cities in the upcoming years, driving market expansion.

Restraint:

Unfavorable Construction Circumstances

The lack of materials due to supply chain disruptions, worker safety concerns, decreased real estate investment, electricity provision, environmental preservation, and a skilled labor shortage are a few of the major factors that have an impact on the construction materials industry. This further delays the timeline and quality of building materials, the impact of natural disasters cumulatively raising building costs, and the resulting need for multiple clearances from different designated authorities, including those in charge of preserving the environment, supplying electricity, reducing pollution, managing land use, and others. These factors limit market expansion.

Opportunity:

Rising foreign investment into the construction sector in many countries

The construction industry benefits in a number of ways from foreign investment. They receive the funding they need from foreign investment to expand their businesses and launch new endeavors. Modern management practices and technological advancements are also brought to the construction industry by foreign investment, which could help improve the caliber of construction projects. By generating jobs in the construction sector, foreign investment can help reduce unemployment. While the USA continues to be the most popular location for foreign investment, the rise of Asia Pacific as a financial center is noteworthy. The countries in the region that have attracted the most foreign investment for their building industries are China, Australia, and Singapore.

Threat:

Growing cost of raw materials and intense competition

Prices are constantly under pressure due to the fierce competition in the construction materials industry. The profitability of the market's active businesses is directly impacted by this. Additionally, other factors, like the rising cost of raw materials and the need to comply with government-imposed quality standards, are having a negative impact on market growth.

Covid-19 Impact

The COVID-19 pandemic significantly harmed the construction sector, which is susceptible to economic cycles. Nearly 45% of construction contractors in the US experienced negative effects from the outbreak. In China, all construction activities came to a halt as a result of various restrictions and lockdown measures. Construction restrictions, a limited workforce, and a lack of raw materials caused a disruption in the supply chain, which had an impact on the supply of construction materials. However, many construction companies are creating strategies to ensure the long-term availability of these materials by identifying alternative material suppliers after learning from difficult times. Although the virus's long-term effects on the building industry are uncertain, the immediate effects are expected to last.

The construction aggregates segment is expected to be the largest during the forecast period

Owing to rising residential and commercial construction projects globally and increased activity in the refurbishment and renovation sector across key markets, the construction aggregates segment is anticipated to witness the largest market share during the forecast period. Macroeconomic factors like urbanization and industrialization will keep driving up demand significantly. Due to increased tourism and the demand for contemporary workplaces, shopping centers, and commercial structures, construction aggregates are in high demand.

The residential segment is expected to have the highest CAGR during the forecast period

Residential segment will experience a strong rebound and robust growth during the prediction period, driven by the ongoing demand for housing and supportive government policy. Governments in various nations are attempting to stop the population shift from rural to urban areas by promoting residential development. For instance, the Pradhan Mantri Awas Yojana (PMAY) program seeks to provide affordable housing to all urban poor people by the year 2022 through initiatives like financial assistance in the form of home loans to construct their necessary residential spaces. Additionally, the USDA promises that the rural residents of multi-unit housing complexes will enable them to be able to pay their rent and offers to finance the elderly, disabled, or low-income people. All of these elements will contribute to the growth of the demand for building materials across various industries.

Region with largest share:

Asia Pacific currently has the largest market share and is expected to continue to lead the industry throughout the forecast period. The government's programs to support affordable housing for all people, rising income levels, and people's preference for individual housing all contribute to the growth of the construction sector in this area. In Australia, it is anticipated that 178,000 new homes will be built during the 2025 fiscal year. Additionally, the region's most populous nations including China and India have the highest proportion of residential end-user consumers, which is boosting the market's expansion.

Region with highest CAGR:

Due to the presence of countries with good economic policies, high GDP, early adoption of cutting-edge infrastructure, and a thriving ecosystem of the construction industry, North America is estimated to have the highest CAGR over the forecast period. In Canada, the number of immigrants has significantly increased in recent years. Population growth in Canada is almost twice as fast as it is in the other G7 nations. Additionally, a lot of the copper, aluminum, steel, stone, and fixtures used in the construction industry in the United States are imported from other countries, particularly China and other developing countries. This is anticipated to accelerate industry expansion in the North American region.



Key players in the market

Some of the key players profiled in the Construction Materials Market include Adbri Ltd., Anhui Conch Cement Co., Ltd., Asahi Glass, BBMG Corporation Ltd, BGC Australia PTY Ltd., Birla Corp. Ltd., Boral Limited, Cementir Holding NV, CEMEX SAB de CV, China National Building Material Co., Ltd., CRH PLC, Daikin Industries, Fletcher Building Ltd., Fujairah Cement Industries, Grasim Industries, HeidelbergCement AG, Holcim Ltd., JK Cement Ltd, JMH International Ltd., Knauf Gips KG, LafargeHolcim Ltd., Lixil Group Corporation, Masco Corporation, Nippon Steel Corp., PPC Ltd., Saint-Gobain and Sika AG.

Key Developments:

In January 2023, Chrono Chape, one of the leading independent providers of on-site self-leveling screeds in France, has been acquired by Holcim. These fluid functions create a smooth foundation upon which builders can lay the floor's finish such as tile or carpet. The company's extensive ready-mix concrete presence throughout France creates a strong alliance of innovation and efficiency.

In June 2022, CRH plc, the world's leading manufacturer of building materials, has announced that it has agreed to acquire Barrette Outdoor Living, Inc., North America's leading provider of residential fencing and railing solutions, for USD 1.9 billion from TorQuest Partners and Caisse de dépôt et placement du Québec (CDPQ). This acquisition aims to create shareholder value through efficient allocation and reallocation of capital.

In May 2022, CEMEX, S.A.B. de C.V. and its partners launched the Carbon Neutral Alliance, a network of 20 public and private entities for the renewable energy generation initiative. This project aims to accelerate the development of cutting-edge technologies to make CEMEX's Rudersdorf plant the first carbon-neutral cement facility by 2030.

Types Covered:
• Construction Aggregates
• Flooring and Wall Coverings
• Construction Metals
• Cement and Concrete
• Bricks and Blocks
• Other Types

End Users Covered:
• Residential
• Industrial
• Infrastructure
• Commercial

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances